Vape Holdings Inc. (OTCMKTS:VAPE) Heads Right Back Down

Vape Holdings Inc. (OTCMKTS:VAPE) had four good sessions that saw it rise from $0.025 all the way to $0.0635. So why is the ticker dropping now?

The answer to that question becomes readily apparent with very little research, if one knows what to look for when doing due diligence on VAPE.

The company’s had 12 million shares outstanding as of August 14, 2015. By the end of September, that number had already grown by more than 50%, all the way to 18.3 MILLION.

Seeing as how just two sessions ago 13 MILLION shares changed hands over the span of a single day of trading, it is highly likely that this number is outdated as well. And how could it not be?

Last time it filed, VAPE had more than $1.6 million worth of convertible notes due and payable. On one hand, nobody really knows exactly how much of that debt is left and how much has poisoned investor value already.

However, on the other hand, some numbers ARE known, and they are pretty indicative of the risks dilution represents in this particular case. The fact that since the end of August, 2015 $227 thousand worth of convertible debt has been turned into more than 5.1 million shares of VAPE common stock speaks volumes in and of itself.

Since this is the way VAPE does business, is it any wonder that the ticker gets smashed right back down to the bottom of the harts every time it starts moving upward?

Both dedicated supporters and opportunistic traders wanting to make money out of VAPE should really consider that particular risk, because it is a very real threat to investor value both in the long term and in the short.